Mahant Indresh Hospital, a private hospital, has snapped its empanelment with the scheme as it has not been paid bills of patients.

The scheme that promises free medical care to BPL card holders in Uttarakhand for various diseases at all government hospitals is hurting the Doon Hospital financially.

Since April, the hospital has unpaid dues of Rs 1.5 crore from the insurance company. “This has strained the financial resources of the Doon Hospital which is dependent on the state government for its annual budget.

The hospital is being forced to cut corners as it has devoted all its resources to the scheme.

Operations in the orthopaedic department where plates and other material are required are not being performed as the supplier is no longer keen to allow an overdraft,” says a senior doctor in the hospital.

But the government hospital cannot walk over the scheme that is the baby of the Chief Minister.

In the supplementary budget passed at the Assembly session at Gairsain recently, a budget provision of around Rs 55 crore was made, out of which the pending bills would be paid.

A total of 88 government and 72 private hospitals in Dehradun district are empaneled with the scheme. Among them, the Mahant Indresh Hospital in Dehradun has decided to end its association with the scheme due to mounting pending bills estimated to be around Rs 1.80 crore to be paid by the insurance company and reimbursed by the state government.

“The rates under different packages for treatment are not viable. These will burden the hospital,” says Bhupinder Raturi, public relation officer, Mahant Indresh Hospital.

However, Dr Prem Lal, in charge of the Mukhya Mantri Swasthya Bima Yojana, says the problem is at the end of the hospital, which has not uploaded bills for payment by the insurance company (United India Insurance).

Further, since the start of the health insurance scheme in April 2015, the government has given it monthly extensions. However, now with the tendering process over, the scheme is expected to be relaunched with a new partner, National Insurance.